Correlation Between Astor Longshort and Calvert Large

Can any of the company-specific risk be diversified away by investing in both Astor Longshort and Calvert Large at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Astor Longshort and Calvert Large into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Astor Longshort Fund and Calvert Large Cap E, you can compare the effects of market volatilities on Astor Longshort and Calvert Large and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Astor Longshort with a short position of Calvert Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Calvert Large.

Diversification Opportunities for Astor Longshort and Calvert Large

0.99

Correlation Coefficient

Astor Longshort  Calvert Large

No risk reduction

The 3 months correlation between Astor and Calvert is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Calvert Large Cap E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap and Astor Longshort is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Astor Longshort Fund are associated (or correlated) with Calvert Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Astor Longshort i.e., Astor Longshort and Calvert Large go up and down completely randomly.

Pair Corralation between Astor Longshort and Calvert Large

Assuming the 90 days horizon Astor Longshort is expected to generate 2.49 times less return on investment than Calvert Large. But when comparing it to its historical volatility, Astor Longshort Fund is 1.94 times less risky than Calvert Large. It trades about 0.17 of its potential returns per unit of risk. Calvert Large Cap E is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  4,802  in Calvert Large Cap E on May 6, 2025 and sell it today you would earn a total of  544.00  from holding Calvert Large Cap E or generate 11.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Astor Longshort Fund  vs.  Calvert Large Cap E

Astor Longshort

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Astor Longshort Fund are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Astor Longshort is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap E are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calvert Large may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Astor Longshort and Calvert Large

The main advantage of trading using opposite Astor Longshort and Calvert Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort position performs unexpectedly, Calvert Large can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Calvert Large will offset losses from the drop in Calvert Large's long position.

The idea behind Astor Longshort Fund and Calvert Large Cap E pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.